College of Administrative and Financial Sciences
Assignment 1
Investment (FIN403)
Deadline: (8/10/2022 @ 23:59 PM)
Course Name: Investment
Course Code: FIN403
Student’s Name:
Trimester: 1st
CRN:
Student’s ID Number:
Academic Year: 1443/1444 H, 1st Trimester
For Instructor’s Use only:
Instructor’s Name: Dr Jyoti Agarwal
Students’ Grade: /10
Level of Marks: High/Middle/Low
Instructions – PLEASE READ THEM CAREFULLY
• This assignment is an individual assignment.
• The Assignment must be submitted only in WORD format via allocated folder
on Blackboard.
• Assignments submitted through email will not be accepted.
• Students are advised to make their work clear and well presented. This also
includes filling your information on the cover page.
• Students must mention question number clearly in their answer.
• Late submitted assignments will NOT be entertained.
• Avoid plagiarism, the work should be in your own words, copying from
students or other resources without proper referencing will result in ZERO
marks. No exceptions.
• All answered must be typed using Times New Roman (size 12, doublespaced) font. No pictures containing text will be accepted and will be
considered plagiarism).
Submissions without this cover page will NOT be accepted.
Assignment Questions
Q1: Give an example of three financial intermediaries and explain how they act as a bridge
between small investors and large capital markets or corporations.
[2 Marks]
Q2: What are some comparative advantages of investing in the following?
a. Unit investment trusts.
b. Open-end mutual funds.
c. Individual stocks and bonds that you choose for yourself.
[2 Marks]
Q3: Q3: The composition of the Alhind Fund portfolio is as follows:
Stock
A
B
C
D
300000
500000
600000
800000
Price
$45
50
30
35
The fund has not borrowed any funds, but its accrued management fee with the portfolio
manager currently totals $60,000. There are 5 million shares outstanding.
What is the net asset value of the fund?
Q4: A U.S. Treasury bill with 90-day maturity sells at a bank discount yield of 9 percent. [4
Mark]
a. What is the price of the bill?
b. What is the 90-day holding period return of the bill?
c. What is the bond equivalent yield of the bill?
d. What is the effective annual yield of the bill?
Note: If using Excel, Students must provide the table of calculations.
Purchase answer to see full
attachment
Assignment 1
Investment (FIN403)
Deadline: (8/10/2022 @ 23:59 PM)
Course Name: Investment
Course Code: FIN403
Student’s Name:
Trimester: 1st
CRN:
Student’s ID Number:
Academic Year: 1443/1444 H, 1st Trimester
For Instructor’s Use only:
Instructor’s Name: Dr Jyoti Agarwal
Students’ Grade: /10
Level of Marks: High/Middle/Low
Instructions – PLEASE READ THEM CAREFULLY
• This assignment is an individual assignment.
• The Assignment must be submitted only in WORD format via allocated folder
on Blackboard.
• Assignments submitted through email will not be accepted.
• Students are advised to make their work clear and well presented. This also
includes filling your information on the cover page.
• Students must mention question number clearly in their answer.
• Late submitted assignments will NOT be entertained.
• Avoid plagiarism, the work should be in your own words, copying from
students or other resources without proper referencing will result in ZERO
marks. No exceptions.
• All answered must be typed using Times New Roman (size 12, doublespaced) font. No pictures containing text will be accepted and will be
considered plagiarism).
Submissions without this cover page will NOT be accepted.
Assignment Questions
Q1: Give an example of three financial intermediaries and explain how they act as a bridge
between small investors and large capital markets or corporations.
[2 Marks]
Q2: What are some comparative advantages of investing in the following?
a. Unit investment trusts.
b. Open-end mutual funds.
c. Individual stocks and bonds that you choose for yourself.
[2 Marks]
Q3: Q3: The composition of the Alhind Fund portfolio is as follows:
Stock
A
B
C
D
300000
500000
600000
800000
Price
$45
50
30
35
The fund has not borrowed any funds, but its accrued management fee with the portfolio
manager currently totals $60,000. There are 5 million shares outstanding.
What is the net asset value of the fund?
Q4: A U.S. Treasury bill with 90-day maturity sells at a bank discount yield of 9 percent. [4
Mark]
a. What is the price of the bill?
b. What is the 90-day holding period return of the bill?
c. What is the bond equivalent yield of the bill?
d. What is the effective annual yield of the bill?
Note: If using Excel, Students must provide the table of calculations.
Purchase answer to see full
attachment
